Friday, January 23, 2015

With the Affordable Care Act’s individual mandate in effect,
nearly all Americans are required to purchase health insurance or face a
possible tax penalty. More people are turning to “exchanges,” also known as
marketplaces, to buy plans.

There’s been a lot of talk about the different type of
exchanges available – specifically, “public” vs. “private” exchanges. Here's a
quick overview to help you sort it out: Public exchanges enable certain
consumers – unemployed individuals, individuals without employer-sponsored
plans and some small companies – to purchase health insurance. These
government-run marketplaces offer insurance plans from private insurers.
Private exchanges, on the other hand, are available only to employees of
companies that choose to participate in it.

These four key factors help define the difference between
public and private exchanges: